31 January 2012, 17:59  Greek anxiety drags down world markets

Greece and its private sector creditors have yet to agree on a plan to write down the nation's debt by 50% as part of a debt exchange. Athens needs to seal the deal soon to secure additional bailout funds and avoid an all-but-certain default on bonds due in March. At the same time, there are signs Greece may need more bailout money than previously expected. EU leaders agreed in October to provide a second €130 rescue program for Greece, but analysts say the nation may need up to €145 billion given its deteriorating economy. Germany, the richest eurozone economy, remains cool to backing additional support for Greece. The German Finance Ministry has proposed giving EU authorities veto power over Greek budget policies as a condition of more bailout money, which Athens rejected as an infringement of national sovereignty.

© 1999-2024 Forex EuroClub
All rights reserved